Until now the body says there has been no process under which organisations could apply for funding.

Under the plans, all existing organisations are able to apply and new organisations will also be eligible for funding.

Decisions will be made over funding depending on the "context of a clear set of strategic priorities and the reduced resources available".

The council's head, Dame Liz Forgan said, although funding cuts will have a "severe impact" on their budget, they will not "dent the shape of our ambitions for the arts and audiences in this country".

She added: "Salami slicing our portfolio of organisations would never have been an appropriate long-term response, regardless of our settlement. That is why a vision for the future is so important to us.

"We want to build a portfolio where organisations, large, medium and small, are able to prosper as well as survive."

The applications will be renewed every few years.

Some successful applicants will also be asked support smaller companies by providing facilities and expertise.